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TOP HEADLINES 15 April 2008
1. INDONESIA: Provinces cash in on commodities boom
2. VIET NAM: Farmers' coops use land to buy shares
3. TURKMENISTAN: Overhaul agriculture to boost production
4. NEPAL: Small power projects help rural development
5. FIJI: Urban households turn to money lenders
6. VIET NAM: Restructuring export products remains key issue
7. INDIA: Turning to private companies for hydropower push
8. LAO PDR: Land ownership issues come with agri-business surge
9. MYANMAR: Lack of job opportunities forces people to look abroad
10. INDIA: Better agricultural infrastructure needed
IN DEPTH
1. INDONESIA: Provinces cash in on commodities boom
Source: WSJ

"Indonesia's far-flung provinces are booming on the back of high commodity prices. Java and Jakarta still dominate national economic activity, accounting for more than half the country's gross domestic product. But since 1999, when decentralization laws handed a larger share of government revenue to the provinces, other islands have increased their share of the economy.

Sumatra, for example, now accounts for 22% of GDP. Some parts of Sumatra -- home to palm-oil, timber and crude-oil businesses -- grew at 8% last year, markedly faster than Indonesia's nationwide expansion of 6.3%. Some provincial capitals on Sumatra and Borneo, long ramshackle rural outposts with little more than a few homes and businesses and some government offices, are starting to sprout modern roads, fancy malls and posh gated communities."



 ADBI What's New

>> Organic Crops or Energy Crops? Options for Rural Development in Cambodia and the Lao People's Democratic Republic (Research Publications)

>> Distinguished Speaker Seminar: Marcus Noland - North East Asia: Current Issues and Future Prospects (18 April)

>> Conference on Key Development Issues in Asia (24 April)

>> Challenges for Emerging Asian Economies in Managing Capital Flows Seminar (3 May)



2. VIET NAM: Farmers' coops use land to buy shares
Source: Vietnam Net

"Joint stock co-operatives and company models, comprised of farmers who buy shares with land instead of money, have become increasingly popular across Viet Nam. These co-operatives owe their success to building up local farmers' confidence in them by sharing profits.

The 10-year contract defines clearly that the land, considered to be capital instead of money, still belongs to the farmers. One hectare of land is equivalent to five stocks. In the first five years, one stock was worth $312, while in the last five years, it was worth $624. Moreover, the farmers, as shareholders, don't need to care about production costs."



3. TURKMENISTAN: Overhaul agriculture to boost production
Source: IWPR

"Attempts to reform the agricultural sector in Turkmenistan have failed, for the moment at least. According to local observers, more than half of all the foodstuffs consumed on the local market have come from other countries. Turkmenistan is a largely desert country with only limited access to irrigation, and much of its arable land is given over cotton, the export cash crop.

Wheat is also an important crop, but not enough is grown to meet local demand. Last year's harvest was put at 1.2 million tons by official statistics, or closer to one million according to independent estimates, far less than annual domestic consumption at almost 2.5 million tons. As well as the scarcity of water, experts say this shortfall is due in part to the low level of technology available to Turkmen farmers."



4. NEPAL: Small power projects help rural development
Source: Renewable Energy World

"The installation of small-scale electricity projects in Nepal is benefiting people's health through the reduction of indoor atmospheric pollution from open fire cooking, heating and lighting. It also benefits education, with light for non-formal-education evening classes for mothers and out-of school children, and the environment through the reduction of usage of biomass.

Villagers define their most urgent, regular household needs as: minimal electric light inside the home, a smokeless stove for cooking and heating, a toilet nearby, and clean drinking water accessible in the village for every person. Any rural village electrification, in order to be relevant and sustainable, needs to be embedded in a long-term holistic community development project."



5. FIJI: Urban households turn to money lenders
Source: Islands Business

"There is a relatively significant demand for credit by urban and peri-urban households in Fiji that commercial banks cannot satisfy for numerous reasons, which includes the lack of collateral. The total informal market is estimated to be worth $8 million per year.

The average loan thus is approximately $152 over a period of between a week to four weeks. People are turning to moneylenders after failing to get a loan from banks, relatives, friends or other sources. While borrowing from the formal financial sectors decreased in the last three years, it increased in the informal sector particularly with moneylenders."



6. VIET NAM OP/ED: Restructuring export products remains key issue
Source: Vietnam Net

"Goods from Viet Nam are still relatively unpopular on the world market due to their low quality, poor design and high transport and customs costs. Economic efficiency and restructuring of export items are key issues facing Viet Nam's export sector. Over 60 percent of export turnover comes from crude products with a low value while industrial products such as garments and textiles and footwear have a high proportion of manufactured goods for export.

It is essential to restructure export products by providing mechanisms and promoting trade activities. The most important thing is to restructure products rather than focus on export mechanisms. If long-term reforms are not implemented, it will be very difficult to increase export turnover."



 DEVBlogs ROUNDUP

IFIwatchnet
The 3rd World View
Screenshots - Thinking Aloud
Corporate Social Responsibility in Asia
China Digital News
Global Voices Online
Chao Vietnam
LIRNE Asia
Bangalore Metblogs

Consumers in PRC might soon be able to track where their food products were manufactured if a bill on a comprehensive food coding system is passed into law. The system, which allocates a unique code to every product, is another major step forward in ensuring quality. It allows every stage of a product's production and distribution cycle to be tracked. Consumers can also get information about the products they buy via the Internet.


7. INDIA: Turning to private companies for hydropower push
Source: Live Mint

"India's government is looking at ways in which it can help private sector firms here tap opportunities in hydropower generation in Bhutan. India and Bhutan have already signed an agreement in July 2006, where they agreed to facilitate, encourage and promote development and construction of hydropower projects and associated transmission systems, as well as trade in electricity.

India has hydropower generation capacity of 32,000MW and plans to add another 16,553MW capacity by 2012. Energy security is the key to sustaining India's 8%-plus economic growth. The country's consumption of petroleum products is around 112 million tons per annum and it imports 78% of its energy needs."



8. LAO PDR: Land ownership issues come with agri-business surge
Source: Guardian

"Lao PDR is enjoying an economic boom fuelled in part by surging demand for its land. Agri-business firms are flocking to the landlocked Southeast Asian nation to grow everything from rubber and pulp trees to organic vegetables and 'green' crops for alternative fuels. However, the rapid investment in agriculture so far has not gone smoothly.

Land conflicts are rising as plantations encroach on village fields and nearby forests, taking away traditional livelihoods with little or no compensation, activists say. Some 150,000 hectares of land has been ceded to private investors for 30-50 years at low rates. In the north, where a new paved highway to China's border opened last month, Beijing firms are heavily investing in rubber to feed their country's surging auto industry."



9. MYANMAR: Lack of job opportunities forces people to look abroad
Source: IRIN

"Poverty is deepening in Myanmar principally due to an economy in disarray and in part because of sanctions. The lack of job opportunities, as well as ongoing conflict in some ethnic minority border areas, has pushed an estimated 1.2 to 1.5 million citizens into Thailand. The ILO estimates that about 6 percent of Thailand's GDP is generated by foreign workers, the vast majority of whom come from Myanmar.

In 2004, Bangkok registered more than 1 million foreign workers, who were granted temporary identity cards that were supposed to afford them legal status, health insurance, and protection from harassment. But many of the migrant workers declined to renew their registration, due to the high cost and rules that tied their legal status to remaining in the same job."



10. INDIA: Better agricultural infrastructure needed
Source: Business Standard

"Amid rising food prices and the Indian government's measures to control inflation showing little signs of success, experts have suggested that better agriculture infrastructure is needed to boost domestic supply. Less yield and declining acreage have kept the pulses production in the country at a stagnant level of 13-14 million tons.

Demand from the bio-fuel sector is equally responsible for high international agri-commodity prices, according to experts. Looming land constraints, water scarcity and unsteady yields are big issues, which might make the future uncertain. Private sector participation should be sought in handling and storage of agricultural produce. Mishandling the produce is the reason for substantial waste in the country."



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